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26 U.S.C. § 1058 — Transfers of securities under certain agreements
Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** In the case of a taxpayer who transfers securities (as defined in section 1236(c)) pursuant to an agreement which meets the requirements of subsection (b), no gain or loss shall be recognized on the exchange of such securities by the taxpayer for an obligation under such agreement, or on the exchange of rights under such agreement by that taxpayer for securities identical to the securities transferred by that taxpayer.
**(b) Agreement requirements** In order to meet the requirements of this subsection, an agreement shall—
(1) provide for the return to the transferor of securities identical to the securities transferred;
(2) require that payments shall be made to the transferor of amounts equivalent to all interest, dividends, and other distributions which the owner of the securities is entitled to receive during the period beginning with the transfer of the securities by the transferor and ending with the transfer of identical securities back to the transferor;
(3) not reduce the risk of loss or opportunity for gain of the transferor of the securities in the securities transferred; and
(4) meet such other requirements as the Secretary may by regulation prescribe.
**(c) Basis** Property acquired by a taxpayer described in subsection (a), in a transaction described in that subsection, shall have the same basis as the property transferred by that taxpayer.
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Source file: Laws/federal/codes/united-states-code/title-26/section-1058-transfers-of-securities-under-certain-agreements--8e3b44fe1b.md
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Source location: Title 26, Chapter 1, § 1058; chapter-001-normal-taxes-and-surtaxes.md
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**(a) General rule** In the case of a taxpayer who transfers securities (as defined in section 1236(c)) pursuant to an agreement which meets the requirements of subsection (b), no gain or loss shall be recognized on the exchange of such securities by the taxpayer for an obligation under such agreement, or on the exchange of rights under such agreement by that taxpayer for securities identical to the securities transferred by that taxpayer.
**(b) Agreement requirements** In order to meet the requirements of this subsection, an agreement shall—
(1) provide for the return to the transferor of securities identical to the securities transferred;
(2) require that payments shall be made to the transferor of amounts equivalent to all interest, dividends, and other distributions which the owner of the securities is entitled to receive during the period beginning with the transfer of the securities by the transferor and ending with the transfer of identical securities back to the transferor;
(3) not reduce the risk of loss or opportunity for gain of the transferor of the securities in the securities transferred; and
(4) meet such other requirements as the Secretary may by regulation prescribe.
**(c) Basis** Property acquired by a taxpayer described in subsection (a), in a transaction described in that subsection, shall have the same basis as the property transferred by that taxpayer.
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Federal law — U.S. Code and appendices · legal_authorities
(1) For nonrecognition of gain in connection with the transfer of obsolete vessels to the Maritime Administration under chapter 573 of title 46, United States Code, see [section 57307 of title 46](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section57307&num=0&edition=prelim).
(2) For recognition of gain or loss in connection with the construction of new vessels, see chapter 533 of title 46, United States Code.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** For purposes of this title, the term “private foundation” means a domestic or foreign organization described in section 501(c)(3) other than—
(1) an organization described in section 170(b)(1)(A) (other than in clauses (vii) and (viii));
(2) an organization which—
(A) normally receives more than one-third of its support in each taxable year from any combination of—
(i) gifts, grants, contributions, or membership fees, and
(ii) gross receipts from admissions, sales of merchandise, performance of services, or furnishing of facilities, in an activity which is not an unrelated trade or business (within the meaning of section 513), not including such receipts from any person, or from any bureau or similar agency of a governmental unit (as described in section 170(c)(1)), in any taxable year to the extent such receipts exceed the greater of $5,000 or 1 percent of the organization’s support in such taxable year,
from persons other than disqualified persons (as defined in section 4946) with respect to the organization, from governmental units described in section 170(c)(1), or from organizations described in section 170(b)(1)(A) (other than in clauses (vii) and (viii)), and
(B) normally receives not more than one-third of its support in each taxable year from the sum of—
(i) gross investment income (as defined in subsection (e)) and
(ii) the excess (if any) of the amount of the unrelated business taxable income (as defined in section 512) over the amount of the tax imposed by section 511;
(3) an organization which—
(A) is organized, and at all times thereafter is operated, exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more specified organizations described in paragraph
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 509
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Tax-exempt foundations** There is hereby imposed on each private foundation which is exempt from taxation under section 501(a) for the taxable year, with respect to the carrying on of its activities, a tax equal to 1.39 percent of the net investment income of such foundation for the taxable year.
**(b) Taxable foundations** There is hereby imposed on each private foundation which is not exempt from taxation under section 501(a) for the taxable year, with respect to the carrying on of its activities, a tax equal to—
(1) the amount (if any) by which the sum of (A) the tax imposed under subsection (a) (computed as if such subsection applied to such private foundation for the taxable year), plus (B) the amount of the tax which would have been imposed under section 511 for the taxable year if such private foundation had been exempt from taxation under section 501(a), exceeds
(2) the tax imposed under subtitle A on such private foundation for the taxable year.
**(c) Net investment income defined**
(1) **In general** — For purposes of subsection (a), the net investment income is the amount by which (A) the sum of the gross investment income and the capital gain net income exceeds (B) the deductions allowed by paragraph (3). Except to the extent inconsistent with the provisions of this section, net investment income shall be determined under the principles of subtitle A.
(2) **Gross investment income** — For purposes of paragraph (1), the term “gross investment income” means the gross amount of income from interest, dividends, rents, payments with respect to securities loans (as defined in section 512(a)(5)), and royalties, but not including any such income to the extent included in computing the tax imposed by section 511. Such term shall also include income from s
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 4940
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definition** For purposes of this title—
(1) **General rule** — Except as otherwise provided in this subsection, the term “unrelated business taxable income” means the gross income derived by any organization from any unrelated trade or business (as defined in section 513) regularly carried on by it, less the deductions allowed by this chapter which are directly connected with the carrying on of such trade or business, both computed with the modifications provided in subsection (b).
(2) **Special rule for foreign organizations** — In the case of an organization described in section 511 which is a foreign organization, the unrelated business taxable income shall be—
(A) its unrelated business taxable income which is derived from sources within the United States and which is not effectively connected with the conduct of a trade or business within the United States, plus
(B) its unrelated business taxable income which is effectively connected with the conduct of a trade or business within the United States.
(3) **Special rules applicable to organizations described in paragraph (7), (9), or (17) of section 501(c)**
(A) *General rule* — In the case of an organization described in paragraph (7), (9), or (17) of section 501(c), the term “unrelated business taxable income” means the gross income (excluding any exempt function income), less the deductions allowed by this chapter which are directly connected with the production of the gross income (excluding exempt function income), both computed with the modifications provided in paragraphs (6), (10), (11), and (12) of subsection (b). For purposes of the preceding sentence, the deductions provided by sections 243 and 245 (relating to dividends received by corporations) shall be treated as not directly connected
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 512
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Unrelated debt-financed income and deductions** In computing under section 512 the unrelated business taxable income for any taxable year—
(1) **Percentage of income taken into account** — There shall be included with respect to each debt-financed property as an item of gross income derived from an unrelated trade or business an amount which is the same percentage (but not in excess of 100 percent) of the total gross income derived during the taxable year from or on account of such property as (A) the average acquisition indebtedness (as defined in subsection (c)(7)) for the taxable year with respect to the property is of (B) the average amount (determined under regulations prescribed by the Secretary) of the adjusted basis of such property during the period it is held by the organization during such taxable year.
(2) **Percentage of deductions taken into account** — There shall be allowed as a deduction with respect to each debt-financed property an amount determined by applying (except as provided in the last sentence of this paragraph) the percentage derived under paragraph (1) to the sum determined under paragraph (3). The percentage derived under this paragraph shall not be applied with respect to the deduction of any capital loss resulting from the carryback or carryover of net capital losses under section 1212.
(3) **Deductions allowable** — The sum referred to in paragraph (2) is the sum of the deductions under this chapter which are directly connected with the debt-financed property or the income therefrom, except that if the debt-financed property is of a character which is subject to the allowance for depreciation provided in section 167, the allowance shall be computed only by use of the straight-line method.
**(b) Definition of debt-financed prope
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 514
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** For purposes of this subtitle, the term “regulated investment company” means any domestic corporation—
(1) which, at all times during the taxable year—
(A) is registered under the Investment Company Act of 1940, as amended ([15 U.S.C. 80a–1](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section80a–1&num=0&edition=prelim) to 80b–2) as a management company or unit investment trust, or
(B) has in effect an election under such Act to be treated as a business development company, or
(2) which is a common trust fund or similar fund excluded by section 3(c)(3) of such Act ([15 U.S.C. 80a–3(c)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section80a–3/c&num=0&edition=prelim)) from the definition of “investment company” and is not included in the definition of “common trust fund” by section 584(a).
**(b) Limitations** A corporation shall not be considered a regulated investment company for any taxable year unless—
(1) it files with its return for the taxable year an election to be a regulated investment company or has made such election for a previous taxable year;
(2) at least 90 percent of its gross income is derived from—
(A) dividends, interest, payments with respect to securities loans (as defined in section 512(a)(5)), and gains from the sale or other disposition of stock or securities (as defined in section 2(a)(36) of the Investment Company Act of 1940, as amended) or foreign currencies, or other income (including but not limited to gains from options, futures or forward contracts) derived with respect to its business of investing in such stock, securities, or currencies, and
(B) net income derived from an interest in a qualified publicly traded partnership (as defined in subsection (h))
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Federal law — U.S. Code and appendices · legal_authorities
Page 2295
TITLE 26—INTERNAL REVENUE CODE
§ 1059
1 So in original. Probably should be followed by a comma.
§ 631(e)(13), Oct. 22, 1986, 100 Stat. 2275, related to basis
limitation for player contracts transferred in connec-
tion with the sale of a franchise.
A prior section 1056 was renumbered section 1062 of
this title.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF REPEAL
Repeal applicable to property acquired after Oct. 22,
2004, see section 886(c)(1) of Pub. L. 108–357, set out as
an Effective Date of 2004 Amendment note under sec-
tion 197 of this title.
[§ 1057.
Repealed.
Pub.
L.
105–34,
title
XI,
§ 1131(c)(2), Aug. 5, 1997, 111 Stat. 980]
Section, added Pub. L. 94–455, title X, § 1015(c), Oct. 4,
1976, 90 Stat. 1618, related to election to treat transfer
to foreign trust, etc., as taxable exchange.
A prior section 1057 was renumbered section 1062 of
this title.
§ 1058. Transfers of securities under certain
agreements
(a) General rule
In the case of a taxpayer who transfers securi-
ties (as defined in section 1236(c)) pursuant to an
agreement which meets the requirements of sub-
section (b), no gain or loss shall be recognized on
the exchange of such securities by the taxpayer
for an obligation under such agreement, or on
the exchange of rights under such agreement by
that taxpayer for securities identical to the se-
curities transferred by that taxpayer.
(b) Agreement requirements
In order to meet the requirements of this sub-
section, an agreement shall—
(1) provide for the return to the transferor of
securities identical to the securities trans-
ferred;
(2) require that payments shall be made to
the transferor of amounts equivalent to all in-
terest, dividends, and other distributions
which the owner of the securit
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 1058
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